According to Roblox’s recent filing with the SEC, the company now plans to go public in March instead of February.
Online gaming platform and game creation system Roblox has released a revised prospectus on its financials before listing its shares on the NYSE. The company also updated its plans to go public. The gaming company highlighted the updated financial report in a filing with the US Securities and Exchange Commission (SEC) on the 11th of February.
Roblox Revised Prospectus
According to Roblox, it previously reported incorrect revenue for the first three quarters of 2020. The company noted that revenue recorded in Q1 to Q3 was higher than what it previously reported. In the previous prospectus Roblox released in mid-January, the company stated that revenue in January till September jumped 68% from the prior year to $588.7 million. Now, the company said revenue in the period advanced 70% from the preceding year to $613.9 million.
Additionally, Roblox said it previously reported that net loss for the first three quarters of 2020 was $213.3 million. The updated prospectus noted that the net loss for the period is $194.5million.
In the SEC filing, Roblox said:
“We have identified a material weakness in our internal control over financial reporting which resulted in our restatement of our financial statements for the years ended December 31, 2018 and December 31, 2019 and the nine months ended September 30, 2020.”
In January, Coinspeaker reported that Roblox was suspending its stock market listing due to SEC scrutiny. The report cited a memo sent by Roblox to its employees. The memo revealed that the gaming company was postponing its plans to go public as a result of SEC scrutiny. The SEC was scrutinizing Roblox on how it recognizes revenue in its finances.
In the memo, Roblox founder and chief executive David Baszucki said SEC wants the company to be more specific. The commission also wants Roblox to acknowledge revenue on consumable products as they are consumed. The executive stated further that adopting the financial position will push Roblox revenue “a bit higher.” However, he said bookings and daily active users would not change. He also added that users’ hours of engagement, and cash flow would not be affected.
Roblox to Go Public on NYSE in March
According to Roblox’s recent filing with the SEC, the company now plans to go public in March instead of February. The gaming company said it had received approval to list its Class A common shares. The company would list on the New York Stock Exchange (NYSE). Revealing that it would list under the ticker “RBLX,” Roblox added:
“Based on information provided by the NYSE, the opening public price of our common stock on the NYSE will be determined by buy and sell orders collected by the NYSE from broker-dealers. Based on such orders, the designated market maker will determine an opening price for our Class A common stock in consultation with our financial advisors pursuant to applicable NYSE rules.”
Some of Roblox’s popular games are Shindo Life, Royale High, Welcome to Bloxburg, Brookhaven RP, and Adopt me!
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
